§ 11-1.6 Property held as fiduciary to be kept separate

(a) Every fiduciary shall keep property received as fiduciary separate
from his individual property. He shall not invest or deposit such
property with any corporation or other person doing business under the
banking law, or with any other person or institution, in his own name,
but all transactions by him affecting such property shall be in his name
as fiduciary; provided, however, that any bank or trust company, when
acting as fiduciary, whether alone or jointly with an individual, may
with the consent of the individual fiduciary, if any (who is hereby
authorized to give such consent), register and hold stock or other
securities (referred to in this section as "securities") in the name of
the nominee of such bank or trust company; and provided, further, that
any individual acting as fiduciary is authorized to direct any bank or
trust company incorporated under the laws of this state, any national
bank located in this state or any private banker duly authorized by the
superintendent of financial services of this state to engage in business
here (who, as private banker, maintains a permanent capital of not less
than one million dollars) to register and hold any securities in the
name of a nominee of such bank, trust company or private banker
(referred to in this section as "bank"). Such bank shall not redeliver
such securities to the individual fiduciary, who authorized their
registration in the name of a nominee of the bank, without first
registering the securities in the name of the individual fiduciary, as
such. But, any sale of such securities by the bank at the direction of
the individual fiduciary shall not be treated as a redelivery. The bank
may make any disposition of such securities which is authorized or
directed by an order or decree of the court having jurisdiction of the
estate or trust.

(b) Any bank shall be absolutely liable for any loss occasioned by the
acts of its nominee with respect to the securities so registered.

(c) The records of such bank shall at all times show the ownership of
any such securities and of those held in bearer form. Such securities
and those held in bearer form shall at all times be kept separate from
the assets of the bank and may be kept by such bank

(A) in a manner such that all certificates representing the securities
from time to time constituting the assets of a particular estate, trust
or other fiduciary account are held separate from those of all other
estates, trusts or other fiduciary accounts; or

(B) in a manner such that, without certification as to ownership
attached, certificates representing securities of the same class of the
same issuer and from time to time constituting assets of particular
estates, trusts or other fiduciary accounts are held in bulk, including,
to the extent feasible, the merging of certificates of small
denomination into one or more certificates of large denomination,
provided that a bank, when operating under the method of safekeeping
security certificates described in this subparagraph (B), shall be
subject to such rules and regulations as, in the case of state chartered
institutions, the state superintendent of financial services and, in the
case of national banking associations, the comptroller of the currency
may from time to time issue. Such banks shall, on demand by the
fiduciary, certify in writing the securities held for such fiduciary.

(d) Any person violating any of the provisions of this section shall
be guilty of a misdemeanor.

(e) This section shall apply to all estates and trusts now in
existence or which may hereafter come into existence.